East Lansing Appliances

question 85

Multiple Choice

East Lansing Appliances
East Lansing Appliances (ELA) expects to have sales this year of $15 million under its current credit policy. The present terms are net 30; the days sales outstanding (DSO) is 60 days; and the bad debt loss percentage is 5 percent. Because ELA wants to improve its profitability, the treasurer has proposed that the credit period be shortened to 15 days. This change would reduce expected sales by $500,000, but it would also shorten the DSO on the remaining sales to 30 days. Expected bad debt losses on the remaining sales would fall to 3 percent. The variable cost percentage is 60 percent, and the cost of capital is 15 percent.
-Refer to East Lansing Appliances.What would be the incremental bad debt losses if the change were made?

• A) $315,000
• B) $260,500
• C) −$260,500 (bad debt losses would decline)
• D) −$315,000 (bad debt losses would decline)
• E) $0 (no change would occur)

Describe the process of synaptic transmission, including the lock-and-key model.

Understand the importance of neurotransmitters and endogenous substances in pain perception and emotional states.

Comprehend the basic principles and applications of brain-imaging techniques.

Understand the difference between the nervous and endocrine systems and their functions.

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Definitions:

Psychological Assessment

A process by which professionals use a variety of tools and techniques to understand a person's behavior, personality, and capabilities.

Reliability

The extent to which a measurement instrument yields reliable and steady outcomes across different periods.

Validity

The degree to which an idea, conclusion, or measurement is based on solid grounds and accurately reflects the reality.

Cognitive-behavioural Assessment

Evaluation process that examines thought and behavior patterns to address psychological issues.